Who gets aninsurance settlement when a leased business is destroyed by fire?

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Who gets aninsurance settlement when a leased business is destroyed by fire?

We own a business and leased on a lease purchase basis to an individual. Our lease agrees that he maintains insurance which names lessor as the insured or as an additional insured and lease states that lessee may at his option obtain renter’s insurance as well. Business burned – now who gets the insurance settlement?

Asked on November 24, 2010 under Real Estate Law, Florida

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Well what kind of insurance did the lesee obtain and what was the settlement for?  Did you insure the building as well?  You need to take the lease and the applicable policies to someone to read and determine what the loss allocation was here.  I am sure that there was business insurance as well as building insurance.  If you are making a claim as well they are not going to let you "double dip" and get paid twice for the same loss.  Which insurance is primary will also need to be determined. I bet yours will be secondary but if you want to make a claim do so and let your insurance company subrogate.  Get help here.  Good luck.


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